Seeking Income And Volatility-Driven Gains: Does Actively Managed BNDS Offer Best Of Both Worlds?

By Meg Flippin, Benzinga

DETROIT, MICHIGAN - September 18, 2026 (NEWMEDIAWIRE) - Will the Federal Reserve continue to raise interest rates or keep them steady? That is the big question weighing on investors' minds heading into 2027. After all, inflation remains higher than the Fed's target, and unemployment is at a healthy 4% - typically considered prime reasons for the Fed to intervene by many. 

Yet economists and some Fed reserve governors are split on whether a rate hike will be enough to tame rising prices in the stores and at the pump, pointing to the war in Iran and tariffs, rather than underlying problems. 

Meanwhile, the White House would like new Fed chair Kevin Warsh to at the very least keep rates steady, if not cut them, even though the odds of an interest rate cut were already slim when the Fed met on September 15 and 16. 

All of this uncertainty is adding to volatility in the markets and causing income-seeking investors to pay careful attention. Historically, if the Fed raises rates, cash investments like savings accounts, money market funds and new bonds pay more income, but older bonds and growth stocks could take a hit. If the Fed keeps rates steady, the stock market might stabilize, but cash earnings stop growing. In an unpredictable market like this, an actively managed ETF can adjust on the fly to help keep income flowing without taking on extra risk. 

Infrastructure Capital Bond Income ETF Seeks Income And Capital Appreciation

That's what the portfolio managers of the Infrastructure Capital Bond Income ETF (NYSE: BNDS) are doing on the daily to try to maximize the returns for its income-seeking investors. BNDS is an actively managed ETF whose primary objective is to maximize income, with a secondary objective to extract capital appreciation. Per the fund, the underlying elevated yield is generated by investing at least 80% of its total assets in fixed-income securities. Primarily, the team aims to achieve this via fixed-income securities -- mostly corporate bonds. The fund is geared toward sectors and issuers that feature strong cash flows and pricing power.  

When deciding which fixed-income securities to include in the fund, the management team uses a flexible mix of quantitative and qualitative analysis to evaluate relative value opportunities across fixed-income markets. BNDS then applies a layer of fundamental analysis to the issuers themselves, reviewing things like enterprise value, capital ratios and operating metrics to determine the company's financial health and ability to service debt. 

Actively Managed Approach In Uncertain Times 

What sets BNDS apart from many other income-focused ETFs is that it is actively managed, which enables it to do things like opportunistically employ an option-writing strategy to enhance income. While high-yield bond funds can be volatile, especially when there's so much uncertainty around the Fed, the fund's managers believe that by adding options into the mix, the volatility can translate into higher premiums for option sellers and thus an additional source of income. Distributions with BNDS are monthly, which increases the convenience, and the fund has a 30-day SEC yield of 8.01% as of September 9, 2026.*

While actively managed ETFs may seem like a rare find in the age of self-directed investing, they can gain increasing importance when market volatility and uncertainty are high. Sure, individual investors can do their own research and build a portfolio, but that requires time, knowledge and skill, all of which the team at Infrastructure Capital can take care of for their investors. 

BNDS is structured to seek and extract asymmetric income-generating opportunities. And because the financial services provider commands decades of experience, it knows what to look for - and what pitfalls to avoid.

Experience Matters 

At the helm of BNDS is Jay D. Hatfield, founder, CEO and portfolio manager of Infrastructure Capital Advisors. With nearly three decades of experience across investment banking, hedge fund management and portfolio construction, Hatfield has consistently focused on income-generating securities and companies tied to real assets like energy infrastructure and real estate. Before launching Infrastructure Capital, he co-founded NGL Energy Partners and managed income-oriented portfolios at SAC Capital (now Point72) and Zimmer Lucas Partners.

That deep background matters. Infrastructure Capital reports that Hatfield's career has been defined by identifying undervalued credit opportunities and structuring strategies to extract reliable cash flows. For BNDS, this translates into a disciplined approach to corporate bond selection, combined with tactical enhancements like option writing. 

Current times can feel uncertain, especially when it comes to what the Fed will do next with interest rates. Sure, investors can go it alone, but if they want to maximize their income strategy with the help of options and do it with seasoned, experienced professionals in an affordable and efficient manner, then  BNDS may be worth checking out. To learn more about the Infrastructure Capital Bond Income ETF (BNDS), click here.

Featured image from Shutterstock.

*Infrastructure Capital Advisors expects to declare future distributions on a monthly basis. Distributions are planned, but not guaranteed, for every month. For more information about each Fund's distribution policy, its 2026 distribution calendar, or tax information, please visit each Fund's web site for more information.

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please call 800-617-0004 or visit (https://infracapfund.com/bnds) for performance data current to the most recent month end.

This content was originally published on Benzinga. Read further disclosures here.

This post contains sponsored content and was created in collaboration with a third-party partner. Benzinga is a publisher and does not provide personalized investment advice or act as a broker or dealer. This content is for informational purposes only and is not intended to be investing advice or an offer or solicitation to buy or sell any security. 

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